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Agency Chief Talks Tough On Mortgage Servicing

By

Maya Jackson Randall

Apr 10, 2012 1:57 pm ET

The chief of the U.S. consumer finance watchdog on Tuesday vowed to punish mortgage-servicing firms that don’t follow new rules.

The proposals of the recently created Consumer Financial Protection Bureau will be backed up “by our enforcement powers, which is a whole game-changing event,” Mr. Cordray said in an interview on the sidelines of a financial counseling event.

Mortgage-service guidelines the bureau announced Tuesday will cover a much broader array of the financial industry. Five large banks already agreed with other federal and state officials on a $25 billion national mortgage settlement in February.